Immigrants are drawn here in hopes of achieving the Canadian dream, whether it is a higher income or home ownership. This allows them to plant new roots in a nation consistently ranked as one of the top countries in the word, and pass on this wealth to future generations. Evidently, many families that are arriving here may find themselves challenged by the current state of the inched up 0.2 per cent month-over-month in December, while the MLS® Home Price Index (MLS® HPI) rose 2.5 per cent month-over-month and rose a record 26.6 per cent year-over-year. The actual national average home price in December 2021 reached $713,500, up 17.7 per cent per cent from the same month last year, says CREA. What will it take to ease the Canadian real estate market? Might record-low supply levels be positively impacted by rising interest rates this year?
With that being said, it appears that a considerable portion of immigrants have maintained a bearish view of the Canadian real estate market dating back to 2018, when prices were approximately a third less than they are today. Will this attitude change in the coming years, with more than one million immigrants projected to enter the country?
New Immigrants Struggle Amid Overpriced Canadian Real Estate Market
According to Statistics Canada’s Housing Experiences survey, two out of five recent immigrants were dissatisfied with the state of the Canadian housing market in 2018. The study found that 63 per cent of recent immigrants were satisfied with their housing situation, below the national average of 82 per cent.
The survey also reveals that Canada’s visible minorities were less satisfied with their housing market compared to the national average. The statistics agency reported that 75 per cent of South Asian households, 74 per cent of Chinese households, and 69 per cent of black households were satisfied.
This comes after Statistics Canada data from 2019 revealed that immigrant incomes were much lower in major urban centres, such as Toronto and Vancouver. The study revealed that Toronto is the worst place to earn a living for immigrants, with median incomes hovering at a mere $29,600 before the coronavirus pandemic. Meanwhile, Vancouver saw immigrants earning a median income of $31,000. Montreal didn’t fare much better, sitting somewhere in the middle of the list of challenging cities for newcomers.
Overall, after a decade, it is estimated that immigrants coming to Canada will earn a little more than 13 per cent compared to the median for all Canadians nationwide.
National Bank of Canada (NBC) calculations found that prospective homeowners require an annual income of close to $200,000 to afford a house in Toronto, or annual earnings of about $215,000 in Vancouver. In total, the financial institution’s qualifying annual income for its urban composite is $144,356, although the median annual income in the index is $77,000.
In the end, the data suggest that the housing affordability crisis is hitting Canadians and immigrants alike. But will these conditions become more pronounced in the next few years?
More Immigrants Will Boost Housing Competition
In 2020 the the federal government announced plans to bring in approximately 1.2 million newcomers before the end of 2023, as part of efforts to boost the economy, be it through job creation or supporting the post-pandemic economic recovery. Reports indicate that Ottawa is considering increasing its target for new permanent residents this year.
Permanent resident arrival admissions skyrocketed in September, marking the biggest monthly gain in a century. The country witnessed the arrival of a little more than 45,000 permanent residents.
But while many immigrants are choosing Ontario and British Columbia as the top landing spots, an increasing number of newcomers are looking to Manitoba and Quebec.
Financial experts are split on this public policy pursuit. “It is a conundrum,” said Stephen Brown, senior Canada economist at Capital Economics. On the one hand, Canada’s struggling labour market and a falling fertility rate justify the need for immigration. On the other hand, an influx of prospective homebuyers could further crowd an environment where housing supply is already hovering at record lows. The solution, asserted by many industry observers, is a greater push to increase housing supply from coast to coast.
An Expensive Canadian Housing Market in 2022?
Whether you’re a recent immigrant or a Canadian citizen, rising real estate prices are a likely reality in 2022.
RE/MAX anticipates that Canadian real estate prices could rise a whopping 9.2 per cent this year, according to the 2022 Canadian Housing Market Outlook Report, with 97 per cent of regions analyzed projected to remain seller’s markets.
“Based on feedback from our brokers and agents, the inter-provincial relocation trend that we began to see in the summer of 2020 still remains very strong and is expected to continue into 2022,” said Christopher Alexander, President of RE/MAX Canada, in the report. “Less-dense cities and neighbourhoods offer buyers the prospect of greater affordability, along with liveability factors such as more space. In order for these regions to retain these appealing qualities and their relative market balance, housing supply needs to be added. Without more homes and in the face of rising demand, there’s potential for conditions in these regions to shift further.”
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
